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ADNOC Gas plc has awarded a $615 million (AED 2.26 billion) engineering, procurement, and construction (EPC) contract to Petrofac Emirates LLC for the construction of carbon capture units, pipeline infrastructure, and a network of wells for carbon dioxide injection at the Habshan gas processing plant, as part of Abu Dhabi National Oil Company’s (ADNOC) accelerated decarbonization plan.
The Habshan Carbon Capture, Utilization, and Storage (CCUS) project, one of the largest carbon capture projects in the Middle East and North Africa (MENA) region, will have the capacity to capture and permanently store 1.5 million tons per annum (mtpa) of carbon dioxide within geological structures deep underground, ADNOC Gas and Petrofac said in separate news releases Tuesday. Carbon dioxide will be injected and placed for permanent storage in ADNOC Onshore’s Bab Far North Field, located approximately 150 miles southwest of Abu Dhabi. The project is expected to be commissioned in 2026 and ADNOC Gas will be responsible for building, operating, and maintaining the project on behalf of ADNOC.
Integrated carbon capture projects, such as the Habshan CCUS project, are essential building blocks for ADNOC Gas to achieve its decarbonization goals”, ADNOC Gas CEO Ahmed Mohamed Alebri said. “This project represents our commitment to significantly reduce greenhouse gas emissions while unlocking new and attractive commercial opportunities for delivering sustainable, lower-carbon growth for the Company. This large-scale project reaffirms our steadfast commitment to maximizing energy output while minimizing our emissions, steering us toward a more sustainable and environmentally responsible future”.
The Habshan CCUS project builds on ADNOC’s landmark carbon capture facility, Al Reyadah, which can capture up to 800,000 tons of carbon dioxide per year, ADNOC Gas said, adding that the project “could support enhanced oil recovery of low carbon-intensity barrels and the production of low-carbon feedstocks such as hydrogen, to help customers decarbonize their operations”. The project will also triple ADNOC’s carbon capture capacity to 2.3 mtpa using “best-in-class” technology, which is the equivalent of removing over 500,000 gasoline-powered cars from the road per year, ADNOC Gas said.
Over 65 percent of the contract value will flow back into the United Arab Emirates (UAE) economy through ADNOC’s In-Country Value program, supporting local economic and industrial growth and diversification, according to the release.
“By accelerating plans to make energy cleaner, the UAE is investing in its future”, Petrofac Group Chief Executive Tareq Kawash said in the company’s release. “We look forward to combining our CCUS expertise and UAE project delivery experience to support ADNOC Gas in delivering on their decarbonization plans, maximizing energy output while minimizing emissions, and helping to support the UAE’s energy transition.”
“Petrofac is committed to supporting ADNOC Gas in delivering lower-carbon growth”, Petrofac Engineering & Construction COO Elie Lahoud said. “We have over 30 years’ experience of successful delivery here in the UAE and continue to put In-Country Value at the center of our operations, utilizing the local supply chain, developing capabilities, and creating new opportunities for UAE Nationals”.
According to an earlier report, ADNOC is doubling its carbon-capture target aiming to reach its net zero goal. The oil major plans to capture 10 million tons of carbon dioxide emissions annually by 2030, up from a previous target of 5 million tons. ADNOC’s executive committee, chaired by Crown Prince Sheikh Khaled bin Mohamed Al Nahyan, approved the plan as part of the company’s strategy to have net zero emissions from its operations by 2045.
Earlier in the month, ADNOC and Occidental subsidiary 1PointFive signed an agreement to begin a jointly funded preliminary engineering study for a one million ton per year Direct Air Capture (DAC) facility in the United Arab Emirates. The study will assess the feasibility of building the first megaton-scale DAC facility outside the U.S. using the same carbon dioxide extraction technology to be deployed in the Stratos plant that 1PointFive is constructing in Ector County, Texas.
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